I rang HR to get some clarification on what the Matrix deal really was. If I reiterate what he said correctly....
Matrix have been given $2.5m plus 25m shares. Matrix has the ability to sell shares to recover $500k each month for the next 5 months out of those 25m shares. QMN can at its discretion, for the next 5 months, pay $500k instead of allowing Matrix to sell shares. At the end of the 5 months a reconciliation is done and Matrix will be allowed to sell shares to cover any shortfall. Any shares left over from the 25m become QMN's property.
The net effect of this is that it gives the company time to generate the additional cash be it by selling some of its other assets, arranging other finance/partnership deal or allowing the shares to be issued which would cause the relative dilution. HR said a likely scenario would be that Matrix would be given the first $500k as cash before one of the other deals was closed out.
Hope this helps clear some of the mud.
Tig
QMN Price at posting:
9.3¢ Sentiment: Hold Disclosure: Held
